VIJAYAWADA: The Andhra Pradesh High court on Tuesday reserved its order on Navayuga Engineering Company Ltd’s (NECL) petition seeking cancellation of government move to go for re-tendering of Polavaram hydel power project. The court heard the arguments of counsels representing both NECL and the State government on Tuesday, a day after NECL moved the court calling the order to cancel its contracts “unilateral”.
The contracting agency filed a petition on Monday in the High Court in which it argued that the government’s decision to float a fresh tender for the completion of the national project was unfair. NECL’s argument was that the contract for the hydel power plant was an agreement between the firm and the Andhra Pradesh Power Generation Corporation (APGENCO). On Tuesday, the matter was posted before justice DVSS Somayajulu. Former Advocate General Dammalapati Srinivas represented the infrastructure firm, while the State was represented by Advocate General Sriram Subramanyam.
Seeking relief from the State government’s decision to scrap the contract, the petitioner’s counsel informed the court that the company was meeting all the deadlines. He said the decision to cancel the contract was partial and was not good for the administration. He further noted that NECL had also interacted with Chief Minister YS Jagan Mohan Reddy, who reviewed the progress at the project. In spite of the work progress shown by Navayuga, the government took a unilateral decision to cancel the contract without giving any valid reason, the petitioner’s advocate argued.
The Advocate General stressed that re-tendering would bring down the cost of the project. Informing that the government has called for reverse tendering, under which more bidders would be able to participate, he observed that the government would ensure the completion of irrigation components of the project along with the hydel power plant. After hearing both the parties at length, the court reserved its order.
Navayuga arguments
State govt decision to float a fresh tender for Polavaram is unfair and unilateral
The contract for the hydel power plant is an agreement between the firm and APGENCO
The company is meeting all the deadlines
What govt says
Reverse tendering will bring down project cost
More bidders will be able to participate
Govt will ensure completion of irrigation components along with hydel power plant